diff --git a/README.md b/README.md
index d272ded..60b5105 100644
--- a/README.md
+++ b/README.md
@@ -67,23 +67,23 @@ Stateless functional components where introduced in React v0.14. They have a muc
 ___Note___: You will still be able to set properties for stateless components!
 
 ## Adding PostCSS plugins
-If you have enabled [PostCSS](https://github.com/postcss/postcss) at generation time, install your PostCSS plugins via npm and *require* it in **postcss** function in *cfg/base.js*.
+If you have enabled [PostCSS](https://github.com/postcss/postcss) at generation time, install your PostCSS plugins via npm and *require* it in the **plugins** array in *postcss.config.js*.
 
 Example for autoprefixer:
 ```bash
 cd my-new-project
 npm install autoprefixer
 ```
-Require in *cfg/base.js*
+Require in *postcss.config.js*
 ```JavaScript
 ...
-postcss: function () {
-  return [
+module.exports = () => ({
+  plugins: [
     require('autoprefixer')({
       browsers: ['last 2 versions', 'ie >= 8']
     })
-  ];
-}
+  ]
+});
 ...
 ```
 
diff --git a/generators/app/index.js b/generators/app/index.js
index d45cb4d..d0b8532 100644
--- a/generators/app/index.js
+++ b/generators/app/index.js
@@ -150,11 +150,14 @@ class AppGenerator extends Generators.Base {
         }
       }
     });
+
+    if(this.postcss) {
+      this.copy('../../generators/app/templates/postcss.config.js', 'postcss.config.js');
+    }
   }
 
   install() {
 
-    // Currently buggy!
     if(this.postcss) {
       const postcss = require('./postcss');
       postcss.write(path.join(this.destinationRoot(), 'conf/webpack/Base.js'));
diff --git a/generators/app/postcss.js b/generators/app/postcss.js
index e1105da..b374c28 100644
--- a/generators/app/postcss.js
+++ b/generators/app/postcss.js
@@ -20,44 +20,37 @@ module.exports = {
     // of the chain. If we have a preprocessor, we will add
     // it before the initial loader
     const cssDialects = [
-      '\\.cssmodule\\.css$',
       '^.((?!cssmodule).)*\\.css$'
     ];
 
+    const cssModuleDialects = [
+      '\\.cssmodule\\.css$'
+    ];
+
     const preprocessorDialects = [
-      '\\.cssmodule\\.(sass|scss)$',
       '^.((?!cssmodule).)*\\.(sass|scss)$',
-      '\\.cssmodule\\.less$',
       '^.((?!cssmodule).)*\\.less$',
-      '\\.cssmodule\\.styl$',
       '^.((?!cssmodule).)*\\.styl$'
     ];
 
-    // Prepare postCSS statement for inclusion
-    const postcssFunction = 'var postcss = { postcss: function() { return []; } }';
-    const postcssAst = esprima.parse(postcssFunction);
+    const preprocessorModuleDialects = [
+      '\\.cssmodule\\.(sass|scss)$',
+      '\\.cssmodule\\.less$',
+      '\\.cssmodule\\.styl$'
+    ];
+
+    const postcssConfig = 'const postcssQuery = { query: { importLoaders: 1 } };';
+    const postcssAst = esprima.parse(postcssConfig);
     const postcss = postcssAst.body[0].declarations[0].init.properties[0];
 
     // The postcss loader item to add
-    const postcssLoaderObject = 'var postcss = [{ loader: \'postcss-loader\'}]';
+    const postcssLoaderObject = 'var postcss = [{ loader: \'postcss-loader\' }];';
     const postcssLoaderAst = esprima.parse(postcssLoaderObject);
     const postcssLoader = postcssLoaderAst.body[0].declarations[0].init.elements[0];
 
-
     // Add postcss to the loaders array
     walk.walkAddParent(ast, (node) => {
 
-
-      // Add the postcss key to the global configuration
-
-      if(
-        node.type === 'MethodDefinition' &&
-        node.key.name === 'defaultSettings'
-      ) {
-        const returnStatement = node.value.body.body[1];
-        returnStatement.argument.properties.push(postcss);
-      }
-
       // Parse all property nodes that use a regex.
       // This should only be available under module.(pre)loaders
       if(
@@ -67,14 +60,28 @@ module.exports = {
         typeof node.value.regex !== 'undefined'
       ) {
 
+        // Enable importLoaders on non cssmodule dialacts
+        if(
+          cssDialects.indexOf(node.value.regex.pattern) !== -1 ||
+          preprocessorDialects.indexOf(node.value.regex.pattern) !== -1
+        ) {
+          node.parent.properties[1].value.elements[1].properties.push(postcss);
+        }
+
         // Regular css usage
-        if(cssDialects.indexOf(node.value.regex.pattern) !== -1) {
+        if(
+          cssDialects.indexOf(node.value.regex.pattern) !== -1 ||
+          cssModuleDialects.indexOf(node.value.regex.pattern) !== -1
+        ) {
           const loaderData = node.parent.properties[1];
           loaderData.value.elements.push(postcssLoader);
         }
 
-
-        if(preprocessorDialects.indexOf(node.value.regex.pattern) !== -1) {
+        // CSS preprocessors
+        if(
+          preprocessorDialects.indexOf(node.value.regex.pattern) !== -1 ||
+          preprocessorModuleDialects.indexOf(node.value.regex.pattern) !== -1
+        ) {
           const loaderData = node.parent.properties[1];
           const lastElm = loaderData.value.elements.pop();
           loaderData.value.elements.push(postcssLoader);
diff --git a/generators/app/templates/postcss.config.js b/generators/app/templates/postcss.config.js
new file mode 100644
index 0000000..fe23259
--- /dev/null
+++ b/generators/app/templates/postcss.config.js
@@ -0,0 +1,3 @@
+module.exports = () => ({
+  plugins: []
+});
diff --git a/test/generators/app/indexTest.js b/test/generators/app/indexTest.js
index 599b150..e7b0ae4 100644
--- a/test/generators/app/indexTest.js
+++ b/test/generators/app/indexTest.js
@@ -225,46 +225,70 @@ describe('react-webpack:app with PostCSS support', () => {
       ]);
     });
 
-    it('should insert the postcss loader into the style pipes', () => {
+    it('should insert the postcss loader into the cssmodule style pipes', () => {
+
       assert.fileContent('conf/webpack/Base.js', `{
                 loader: 'css-loader',
                 query: cssModulesQuery
               },
               { loader: 'postcss-loader' }`);
-      assert.fileContent('conf/webpack/Base.js', `{ loader: 'css-loader' },
-              { loader: 'postcss-loader' }`);
+
       assert.fileContent('conf/webpack/Base.js', `{
                 loader: 'css-loader',
                 query: cssModulesQuery
               },
               { loader: 'postcss-loader' },
               { loader: 'sass-loader' }`);
-      assert.fileContent('conf/webpack/Base.js', `{ loader: 'css-loader' },
-              { loader: 'postcss-loader' },
-              { loader: 'sass-loader' }`);
+
       assert.fileContent('conf/webpack/Base.js', `{
                 loader: 'css-loader',
                 query: cssModulesQuery
               },
               { loader: 'postcss-loader' },
               { loader: 'less-loader' }`);
-      assert.fileContent('conf/webpack/Base.js', `{ loader: 'css-loader' },
-              { loader: 'postcss-loader' },
-              { loader: 'less-loader' }`);
+
       assert.fileContent('conf/webpack/Base.js', `{
                 loader: 'css-loader',
                 query: cssModulesQuery
               },
               { loader: 'postcss-loader' },
               { loader: 'stylus-loader' }`);
-      assert.fileContent('conf/webpack/Base.js', `{ loader: 'css-loader' },
+    });
+
+    it('should insert the postcss loader into the NON cssmodule style pipes', () => {
+
+      assert.fileContent('conf/webpack/Base.js', `{
+                loader: 'css-loader',
+                query: { importLoaders: 1 }
+              },
+              { loader: 'postcss-loader' }`);
+
+      assert.fileContent('conf/webpack/Base.js', `{
+                loader: 'css-loader',
+                query: { importLoaders: 1 }
+              },
+              { loader: 'postcss-loader' },
+              { loader: 'sass-loader' }`);
+
+      assert.fileContent('conf/webpack/Base.js', `{
+                loader: 'css-loader',
+                query: { importLoaders: 1 }
+              },
+              { loader: 'postcss-loader' },
+              { loader: 'less-loader' }`);
+
+      assert.fileContent('conf/webpack/Base.js', `{
+                loader: 'css-loader',
+                query: { importLoaders: 1 }
+              },
               { loader: 'postcss-loader' },
               { loader: 'stylus-loader' }`);
     });
 
-    it('should append the postcss function to the base config', () => {
-
-      assert.fileContent('conf/webpack/Base.js', 'postcss: function () {');
+    it('should generate the postCSS config', () => {
+      assert.file([
+        'postcss.config.js',
+      ]);
     });
 
     it('should generate required source files', () => {
diff --git a/utils/configopts.json b/utils/configopts.json
index 0c7e26b..df1aa44 100644
--- a/utils/configopts.json
+++ b/utils/configopts.json
@@ -45,8 +45,8 @@
         "name": "postcss",
         "value": "postcss",
         "packages": [
-          { "name": "postcss", "version": "^5.0.21" },
-          { "name": "postcss-loader", "version": "^0.9.1" }
+          { "name": "postcss", "version": "^5.2.6" },
+          { "name": "postcss-loader", "version": "^1.1.1" }
         ]
       }
     ]
@@ -57,7 +57,7 @@
         "name": "cssmodules",
         "value": "cssmodules",
         "packages": [
-          { "name": "react-css-modules", "version": "^3.7.10" }
+          { "name": "react-css-modules", "version": "^4.0.3" }
         ]
       }
     ]
@@ -74,7 +74,7 @@
         "value": "sass",
         "suffix": ".sass",
         "packages": [
-          { "name": "sass-loader", "version": "^3.2.0" },
+          { "name": "sass-loader", "version": "^4.0.2" },
           { "name": "node-sass", "version": "^3.7.0" }
         ]
       },
@@ -83,7 +83,7 @@
         "value": "scss",
         "suffix": ".scss",
         "packages": [
-          { "name": "sass-loader", "version": "^3.2.0" },
+          { "name": "sass-loader", "version": "^4.0.2" },
           { "name": "node-sass", "version": "^3.7.0" }
         ]
       },